KAIZEN

KAIZEN PROGRAM

June 2013

An Continuous Improvement Program That Appreciates Ideas

Kaizen Program

KAIZEN

1

Agenda Items

KAIZEN PROGRAM

Kaizen History & FeaturesKaizen Program BenefitsKaizen Program IntroductionKaizen Proposal FormProcess OverviewKaizen AwardsProgram Cost vs. SavingsKaizen PanelContinuous Improvement

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4

3

5

6

7

8

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9

KAIZEN

Kaizen History & Features

Developed by Japanese companies

A combination of two Japanese symbols:

“Better” & “Change” (Continuous Improvement)

Widely recognized and adopted by many famous

Fortune 500 companies world-wide and spreading

Participation of the employees on their own initiatives Effective approach for vitalizing organization management

Gives credit directly to committed talented staff and managers

Starts with many small improvements without significant investment

A continuous improvement practices derived from daily work/operations

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1

KAIZEN

Kaizen Program Benefits

IMPROVE Quality

Process

Savings

Safety

Staff Satisfaction

Customer Service

Resource Utilization

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“Total focus on a defined process to create radical improvement in a short period of time”

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REDUCE Time

Cost

Errors

Inventory

Space

Waste

Efforts

KAIZEN

Kaizen Program Introduction

Require minimal resource/budget

Managed by 5 “Kaizen Panel” members

Support company objective, goals and strategies

Introduction and dissemination of KAIZEN practices Organized efforts of all company departments/divisions

Sustainable basis for improvement of quality & productivity

Project is administered by HR with technical assistance from all units

HR will track the status of all submitted Kaizen ideas and produce reports

It is a strategy to improve things through many small incremental improvements

5

3

KAIZEN

Kaizen Proposal Form

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4

KAIZEN

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Process Overview5

Supporting Documents+1

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3

Kaizen Proposal Form

KAIZEN

SubmitIdea

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Process Overview

ApproveIdea

ImplementIdea

Champion fill “Kaizen Proposal Form”

Champion attach supporting document(s)

Panel member checks if form is complete

Panel member assign Kaizen Number

5

KAIZEN

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Panel discuss idea with champion (if needed)

Panel review and endorse proposal

Panel awards Kaizen points

Sponsor approve the idea

Copy sent to Champion & Sponsor

Process Overview

50

100

150

200

250

300

Kaizen Points

5

SubmitIdea

ApproveIdea

ImplementIdea

KAIZEN

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Sponsor lead the implementation

Panel confirm implementation

Panel award Kaizen Points

Copy sent to Champion & Sponsor

Process Overview

500

1000

1500

2000

2500

3000

Kaizen Points

5

SubmitIdea

ApproveIdea

ImplementIdea

KAIZEN

Kaizen Awards

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Gold

Kaizen

1

Provide More Parking to company Staff 800

Improve Truck Traffic Coming Into Terminal 1300

Reduce Custom Clearance Time 3500

10,000 Points

Example

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John Smith Kaizen Proposals

2011 Points

Prevent Safety Accident in Shipment Yard 600

Include company Banner on 1000 Websites 1100

Introduce Recycling “Blue Bin” Under Each Desk 2700

2012 Points

Total

10,000

KAIZEN

Kaizen Awards

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Gold

Kaizen

Silver

Kaizen Bronze

Kaizen

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2 COSTA Cruise Vacations

Family Health Club Membership

2 Travel Economy Gift Tickets

Gold Gift Voucher

2-Days Hotel Vacation

2 Health Club Memberships

Family Boat Cruise with Dinner

Silver Gift Voucher

1-Day Hotel Vacation

1 Health Club Membership

Family Restaurant Dinner

Bronze Gift Voucher

5000 Points10,000 Points

3,000 Points

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Example

KAIZEN

In recognition of your Kaizen efforts during year 2011. You have been granted a Kaizen Gold Award for practicing kaizen

spirit in accordance with our company continuous improvement program.

Mr. John Smith

YOUR COMPANY

nameChief Executive Officer

NameKaizen Program Manager

改善Kaizen Gold Award

10,000 Points

Gold

Kaizen

Business Development Division

KAIZEN

4.1¢13.3%Non-Cash

Incentive

12¢13%Cash

Incentive

Cost per Incremental

Dollar

Performance Improvement

“People, Performance and Pay: Dynamic Compensation for Changing Organizations”- The Hay Group

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7

“Cash vs. Non-Cash Rewards”

Kaizen Program Cost vs. Savings

KAIZEN

Kaizen Program Cost vs. Savings

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Gold

Kaizen

Silver

Kaizen Bronze

Kaizen

12 3

3

Cost $2,000 x 5

1

6

2013 Target =50 Kaizen Proposals 10 Staff Redeem Kaizen Points

Cost $5,000 x 1

Cost $1,000 x 10

Total Cost = $25,000 2013 Total Savings = $1 Mill.

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VS.

2013

KAIZEN

Kaizen Panel

Report progress to top management on total improvements made

Establish and deliver Kaizen training to all employees and managers

Identify top talents and highlight their Kaizen ideas and accomplishments

Approve “Awards List“ given to employees for their improvement efforts

Increase total savings from continuous improvement program at our company

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Kaizen Panel Roles & Responsibilities:

Study Kaizen proposals and award kaizen points

Collaborate with units to promote Kaizen culture

Work with company management to successfully

execute proposed improvement kaizen ideas

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KAIZEN

Continuous Improvement at ADPC

Improvement in all areas of business serves to enhance quality and efficiency at our company.

Three things required for successful kaizen program: operating practices, total involvement, and training.

Supervisors can direct their attention more on improvement than supervision.

Continuous improvement over a long period of time with minimum financial investment, and with participation by everyone in the organization.

Middle management can help create conducive environment for improvement by making employees conscious of their responsibilities for improvement.

Every employee strives for improvement. Top management views improvement as part of our company strategy.

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KAIZEN

Thank You